SEC Proposes Expanding Registration Exemptions For "Platform Workers"

The SEC proposed amendments that would expand exemptions from registration related to securities issued by non-reporting companies for certain compensation plans. (See also this related action, in which the SEC proposed to allow internet platform companies to partly compensate gig workers with securities.)

The proposed rule would amend SA Rule 701 ("Exemption for offers and sales of securities pursuant to certain compensatory benefit plans and contracts relating to compensation") to:

• update the disclosure requirements for exempt transactions that are over $10 million, including the application of the disclosure threshold, the required financial disclosure type and how often such disclosures should be updated;